Greening Real Estate – Where are we now? | Bryan Cave Leighton … – JD Supra


In 2016, the Paris Climate Agreement came into force and set the ambitious goals of reducing emissions by 45 percent by 2030 and reach carbon neutrality (net-0) by 2050 in order to keep global warming to no more 1.5 degrees celsius[1]. As approximately 40 percent of all global emissions are contributed by buildings and construction, the importance of how real estate (both construction of new developments and, perhaps more critically, existing buildings) can be greened is key to meeting these goals.

Since 2016, companies are also more keenly aware of the impact of climate change with 80 percent of the world’s largest companies reporting exposure to climate change related physical or market transition risks[2]. There is a clear drive by corporations to move forward on their environmental, social and governance (ESG) or sustainability agendas. Coupled with the current global energy crisis, greening real estate and renewable energy options have never been more relevant.

As we enter 2023, ESG is one of the most pressing topics in the real estate sector that is here to stay. This article will look at where the market is in relation to the push for greener real estate and what opportunities or risks are likely to arise. Over the next few articles, we will share our insights about M&A in the green space; green financing and green retrofits in key jurisdictions such as the United Kingdom and Asia with a particular focus on green energy and energy efficiency solutions.

Push by government

In line with the Paris Climate Agreement, the UK government plans to reduce business and industrial energy consumption by at least 20 percent by 2030 and has targeted net-0 emissions by 2050[3]. Under the Minimum Energy Efficiency Standards legislation, all rental properties in England and Wales require an Energy Performance Certificate (EPC)

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